Shares of Coldwater Creek Inc. (NASDAQ: CWTR), operating as a multi-channel specialty retailer of women’s apparel, accessories, jewelry, and gift items, are down sharply in trading today.
At last check, CWTR shares were trading 7.40% lower at $0.740 on volume of 1.02 million. Despite the drop, CWTR shares are up more than 61% for the week.
CWTR shares surged on Tuesday after the company announced that it closed a five-year, $65 million senior secured term loan provided by private equity firm Golden Gate Capital. CWTR also announced completion of an amendment to its $70 million credit facility with Wells Fargo Capital Finance.
Dennis Pence, Chairman and CEO of Coldwater Creek, said that Golden Gate Capital brings a highly flexible investment approach and extensive retail expertise, which will be beneficial in the continued revitalization and long-term growth of the company.
Jim Bell, COO and CFO of Coldwater Creek, said that CWTR believes that Golden Gate Capital’s extensive retail investment experience, along with the company’s long-term banking relationship with Retail Finance team at Wells Fargo Capital Finance, strengthens the company’s financial position and provides the capital foundation to achieve long-term goals.
Meanwhile, the retailer also reiterated its second-quarter fiscal 2012 guidance. The company continues to expect a loss per share of $0.15 to $0.20 for the second quarter.
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